Stop always looking for 'shortcuts'. There’s a seemingly 'clumsy' yet extremely practical method in trading — focus on subtraction, remember the rules, and learn and practice slowly, which can actually help you steadily capture most of the profits. Start by 'never doing 3 things', then memorize the 6 short-term trading rules, so beginners can avoid many pitfalls.

I. 3 'Iron Rules' for Trading

  1. Never chase after buying when prices are rising; instead, position yourself when prices are falling.
    Don’t be swayed by the FOMO emotion of 'the more it rises, the more daring I buy'; real opportunities lie in the declines. Make it a habit to turn 'when others are fearful, I am greedy; when others are greedy, I am fearful' into practice — slowly accumulate chips during declines, so you have room to earn profits during rises, which is 10 times safer than chasing highs.

  2. Never chase after orders
    Chasing orders (placing large buy/sell orders in advance) may seem 'precise', but in reality, it can easily attract the attention of major players: either you get harvested as a 'counterparty', or you miss the real transaction opportunity. The market rhythm is ever-changing, so don’t bind yourself with ‘fixed thinking’. Being flexible is more reliable than rigidly chasing orders.

  3. Never be fully invested
    Being fully invested is the biggest 'passivity' in trading: once the market corrects, there's no room for additional investments; when better opportunities arise, there's no capital to enter. This market is not short of opportunities, and the 'opportunity cost' of being fully invested is too high — divide your funds into 3-4 parts, using one part each time, to maintain flexibility.

II. 6 Short-term Trading Rules (proven effective)

  1. Wait for new highs at high-level consolidation, and new lows at low-level consolidation; act only when the market direction becomes clear.
    When the price is consolidating at a high level, it usually makes another push for a new high; when consolidating at a low level, it is likely to test new lows again. Don’t rush to enter; wait for a clear direction of rise or fall (for instance, breaking out of the consolidation zone with increased volume) before taking action to avoid being fooled by 'false breakouts'.

  2. Do not trade during consolidation; mastering this step can reduce losses by half.
    Most people lose money because they can't help but 'blindly operate' during consolidation: buying when the price rises a little and selling when it drops a little, ultimately losing a lot in fees without making a profit. The consolidation period is a 'market accumulation period', and refraining from trading is more important than frequent operations.

  3. Buy when the daily line closes in the red, sell when it closes in the green.
    This is the most intuitive signal for short-term trading: when the daily line closes in red (indicating a drop that day), it’s an opportunity to buy low; when it closes in green (indicating a rise that day), it's time to take profits. Don’t do the opposite — being afraid to buy when prices drop or not wanting to sell when they rise will only cause you to miss out on wave profits.

  4. Slow decline leads to mild rebounds, while accelerated declines lead to strong rebounds.
    Understanding the rhythm of decline allows you to capture rebounds: if the decline is slowing down, the rebound will likely be gentle; don’t expect to make big money. If a sudden acceleration in decline occurs, a strong rebound is likely to follow, making it a better time to buy low for greater profit potential.

  5. Pyramid building is a fundamental rule of value investing.
    Don’t go all in when buying coins; follow the 'pyramid' strategy: the lower the price, the more you buy; the higher the price, the less you buy. For example, buy 10% of your position the first time, buy 20% if it drops 5%, and buy 30% if it drops 10% — this helps lower your average cost and makes it easier to break even even if you’re stuck.

  6. After continuous rises and falls, there must be consolidation; avoid extreme operations during the consolidation period.
    After a continuous rise or fall in prices, there will definitely be a consolidation period. During this time, avoid extreme operations: don’t 'sell everything' during high-level consolidation, in case it breaks out and rises further; don’t 'buy everything' during low-level consolidation, in case it breaks down and drops further. Wait until the consolidation ends and the direction becomes clear (for instance, breaking support or resistance), then act decisively — clear positions if needed, and enter the market if appropriate.


The 'foolish method' of trading, at its core, is 'to keep discipline and not be greedy'. You don’t need to aim for catching every top and bottom; as long as you avoid fatal mistakes and remember the basic rules, you will gradually find your rhythm and steadily secure profits.